Print on Demand Basics to Get Started: A Business Checklist

Many first-time sellers believe that the basics of getting started with print-on-demand (POD) are as simple as selecting products and uploading designs. In reality, you also need to know your recurring costs and what each sale actually brings you in to keep the business afloat.

At Amplified—the largest event in the print-on-demand industry—six- and seven-figure sellers talked about the mundane aspects: bank accounts, margins, taxes, and the day they quit their jobs.

We’ve compiled their advice here to help you learn what to set up before your first sale, what to track once orders come in, and what to look for as your online business grows.

Disclaimer

This content is for informational purposes only and does not constitute legal, tax or financial advice. The content is based on our understanding at the time of publication. Readers are advised to seek advice from qualified professionals. Any action you take based on this information is entirely at your own risk.

This is how the print-on-demand business model works

What a merchant does and what Printful handles

In the print-on-demand business model, the retailer is responsible for the creative, sales and marketing efforts, while the POD partner handles production, inventory management, quality control and shipping. Nothing is made until a customer places an order.

This is how the print-on-demand model works:

• Sign up with a print-on-demand partner like Printful free and select the POD products you want to sell.

• Create designs for your individual products List them on an e-commerce platform like Shopify or WooCommerce or on a marketplace like Etsy or TikTok Shop.

• Set the selling price And Keep the difference between this amount and what your print on demand provider charges.

• Connect your print-on-demand service with your online store So orders come through automatically.

• Printful prints or embroiders the item once a customer places an orderThe product and print quality are then triple checked.

• Delivery will be made from the facility closest to the buyertake with fulfillment two to five working days.

• Customer service, marketingAnd Tax obligations stay with you.

Why is there no inventory management?

Unlike traditional retail, you don’t have to purchase inventory in advance, and print-on-demand services only produce items when they’re ordered. This means you can start a POD business with minimal upfront costs and no unsold inventory sitting in a spare room.

With this fulfillment model you can also:

• Sell ​​customized products in a wide range – T-shirts, hoodies, mugs, phone cases, wall art – with no upfront investment

• Test ideas based on real market research Instead of guessing, you can drop all unsold designs without losing money

• Update your store regularly with fresh designs and products in just a few minutes

Dominic out Dogecoretalks about Amplified’s Printful 101 streamsummed it up: He and his business partner had no money to buy stocks, no place to store them, and no idea if anyone would buy anything. That’s what matters It’s so tempting to start a print-on-demand business.

However, POD business owners still have to pay for samples, subscriptions, taxes, and marketing materials regardless of whether a design sells or not.

Before your first sale

Before you start selling, clarify the following print-on-demand basics:

Open a separate bank account

Open a separate account from day one, even if it’s not yet registered as a business account. Forward your PayPal and Print on Demand Shop payouts there So personal expenses never mix with what you earn.

Crystal Leewho runs the faith-based brand Girl Plus God, shared this advice on Amplified’s Printful 101 stream.

“I want you to feel as much like an entrepreneur as possible.” she told the audience. Treating your print-on-demand business like a real business from the start will change the seriousness with which you run it.

The separation also pays off for tax purposes. When an account only handles business activities, it only takes a few minutes to figure out what you’ve earned, what you’ve spent, and what you owe, rather than spending an evening untangling receipts.

Calculate your profit margin for each product

Your profit margin is the retail price minus production and shipping costs, platform fees, subscriptions and print-on-demand marketing costs to acquire customers.

Here is an example with that Bella + Canvas 3001one of the most popular print-on-demand products in the Printful catalog:

The $11.92 Is what is left before advertising expenses and income tax. Run the same amount for each print on demand product you list.

A mug and an embroidered hoodie have different base prices and delivery rates, so a percentage that works for one item may disappear for the other. Many print-on-demand sellers aim for a profit margin of 20%-50%.

Reinforced guest Levi Younger warned POD seller not to spend more on advertising than the estimated profit. Otherwise, you will lose money on every order.

Quick tip: Sell ​​on Etsy? The Printful Etsy Calculator calculates listing and transaction fees for you, so you can see the actual margin before listing your custom products.

Budget for sample orders

By ordering samples you can See the print and product quality potential customers receive. Wash the item a few times to see how the graphic elements hold up and take high-quality product photos for your marketing materials.

On the Amplified Discussion round, Guest Michael Essek I kept the test simple. Order a few designs on a few different blanks, hold them in your hand and ask yourself: “Would I like to wear this shirt?”

Printful merchants with an affiliated shop can order samples at a 20% Discountstarting with one order per month and up to three items. This grant grows with your sales, up to a maximum of five sample orders per month.

Find out about taxes on your shipping orders

POD business owners have to deal with two types of taxes:

• Tax on what you buy. Every time a customer places an order, they purchase that item from Printful. Printful charges taxes on this purchase depending on where the item is shipped.

• Tax on what you sell. This is the tax that may apply to sales from your online store. The responsibility lies with you, not Printful.

You can stop paying the first type of tax once you are registered for sales tax or VAT. US sellers can Provide a resale certificateand those in the EU and UK can submit a sales tax identification number. Both go into the Invoice section of your Printful dashboard.

Submit your documents early. An exemption only applies to orders placed after your documents have been approved. Therefore, anything you sell during the waiting period will still be subject to tax. Learn more in our Printful tax guide.